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- The price of bitcoin dropped more than 5% the day before and is currently trading at over $97,000 on Wednesday.
- The price of Ethereum closes below the 50-day EMA support level at $3,446, suggesting that a decline is imminent.
- If the price of ripples breaks above the upper symmetrical triangle limit, it may rise.
After dropping more than 5% the day before, Bitcoin (BTC) is currently trading at about $97,000 on Wednesday. Following Bitcoin’s lead, Ethereum (ETH) and Ripple (XRP) see declines of 8.3% and 6.15%, respectively. According to CoinGlass statistics, the latest decline has set off a wave of liquidations that have totaled over $560 million in the cryptocurrency market.
The price of bitcoin closes below $100,000.
Tuesday saw a 5.17% drop in the price of bitcoin, closing below the $100,000 support level. As of this writing on Wednesday, it is approximately $97,000.
If Bitcoin keeps falling, it may reach its 38.2% Fibonacci retracement mark at $92,493 (which is derived from the low of $66,835 on November 4 to the high of $108,353 on December 17).
On the daily chart, the Relative Strength Index was 49, circling its neutral level of 50, suggesting that traders were unsure of what to do. The price of Bitcoin may drop precipitously if the RSI falls below the neutral level, indicating the emergence of bearish momentum.
However, Bitcoin may continue to rise and retest its all-time high of $108,353 on December 17, 2024, if it bounces back and closes above the $100,000 mark.
The price of Ethereum closes below the 50-day EMA.
The price of Ethereum fell 8.3% on Tuesday, closing below the 50-day EMA at $3,446. As of this writing on Wednesday, it is approximately $3,395.
ETH may continue to fall and retest its psychological significance level of $3,000 if it corrects further and falls below the $3,236 support level.
The daily chart’s RSI indicates negative momentum at 44, below its neutral threshold of 50.
On the other hand, ETH may continue to increase and retest its psychological significance level of $4,000 if it bounces back, breaks over the $3,236 barrier, and closes above the $3,522 weekly resistance level.
If the ripple breaks above the symmetrical triangle, it might rally.
The price of ripple is trading inside a symmetrical triangle, which is a technical pattern made up of two convergent trendlines joining several highs and lows (from early December to early January). The aim of this bullish technical pattern is often determined by calculating the separation between the breakout point and the first swing high and low.
XRP fell 6.15% on Tuesday after being rejected by the symmetrical triangle’s upper trendline. As of this writing on Wednesday, it has somewhat recovered and is trading at about $2.32.
The technical target reached by this pattern would be $3.63 if the breakout occurs by completing a daily candlestick above the daily resistance level at $2.56. Investors should be wary of this speculative rise since traders may decide to book gains if it slows down following a 17% rally to retest Ripple’s psychological importance level of $3.00.
An increase in bullish momentum is indicated by the RSI indicator’s reading of 53, which is higher than its neutral value of 50.
XRP would continue to fall and retest its next support level at $1.40 if it closes below the $1.96 daily support level.
FAQ
The recent price drop in Bitcoin, Ethereum, and Ripple is attributed to increased market liquidation. Over $560 million was liquidated across the cryptocurrency market, according to CoinGlass statistics. Additionally, key technical support levels for these cryptocurrencies were breached, contributing to bearish momentum.
Bitcoin is currently trading at approximately $97,000 after dropping more than 5%. Its key support level is $92,493, the 38.2% Fibonacci retracement mark. If Bitcoin manages to rebound, it could test the $100,000 resistance level and potentially retest its all-time high of $108,353.
Ethereum recently closed below its 50-day EMA at $3,446 and is currently trading at about $3,395. If it continues to decline, it may retest the $3,000 psychological support level. Alternatively, a recovery above $3,522 could lead Ethereum toward the $4,000 mark.
Ripple’s symmetrical triangle pattern indicates potential price consolidation before a breakout. If XRP breaks above the upper trendline at $2.56, it could rally to a target of $3.63. However, failure to maintain momentum could result in traders booking profits and XRP retesting support levels like $1.96 or $1.40.
The Relative Strength Index (RSI) provides insight into market momentum:
- Bitcoin: RSI is near its neutral level of 50, indicating trader uncertainty. A drop below 50 could signal bearish momentum.
- Ethereum: RSI is at 44, suggesting negative momentum and further downside potential.
- Ripple: RSI is at 53, above the neutral level, signaling a slight increase in bullish momentum.
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